SEC Commissioner Kathleen Casey believes rules for investment advisors and broker/dealers are out of sync. Casey said Wednesday she “strongly believed” that rules needed to be “harmonized,” according to Reuters news service.

Rules governing financial professionals date back to the early 1900s and have failed to keep pace with the complexity of today’s industry. Investors don’t understand the difference between investment advisors who give financial advice and broker/dealers who carry out investment transactions, Casey said. Many broker/dealers give investment advice but are not regulated by the same laws that govern investment advisors.

In light of the Madoff ponzi scheme, officials like Casey are now examining governing laws since Madoff ran a broker/dealer and later became an investment advisor. Casey says the idea of creating a self regulatory organization (SRO) for investment advisers is appealing. Furthermore, she said, a merger between the SEC and futures regulator the Commodity Futures Trading Commission would be a valuable and important regulatory reform.